Artemis Capital Fund
Fund Manager's Comment
Data as at 26 February 2010
After January's sell-off in markets, UK equities regained some upward momentum in February. But we see no reason to be too optimistic. The economy is getting better from low levels, but it is getting better at a decelerating pace. And with the convoluted logic of equity markets it is worth remembering that stock prices in some sectors, most notably basic resources and early cyclicals, tend to follow not economic growth but changes in economic growth; the poetically named “second derivative of economic output”. And the second derivative doesn’t look great.
Still, we believe that the consensus view is too negative on the UK vs. e.g. Europe. So we have been adding to domestic UK companies (retailers, house-builders, and the UK-facing banks). In a survey of a large group of institutional investors, the UK banks were crowned as the “most hated sector in the most hated investment region”. This doesn’t mean that UK banks will go up in price, but it does mean that it is a contrarian bet. So we have positions in Lloyds, RBS, Barclays and Standard Chartered. In the consumer space we have been adding to Next, DSGI and Kingfisher.
Fund Manager
Jacob de Tusch-Lec
Manager of the Artemis Capital Fund Fund since 1 January 2006
Awards
Capital PDF| IMA Sector | UK All Companies |
|---|---|
| Sedol Number | 0679552 |
| Fund Size (offer basis) | £400.3m |
| Historic yield | 2.10% |
| Unit offer price | 695.31p |
| Unit bid price | 657.27p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 23 December 1986 |
| Launch price | 50p |
| Preliminary charge | 5.00% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 7 June |
| Total Expense Ratio | 1.66% |
Data as at 26 February 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| Capital Fund (TR)† | 1283.7 | 1.5 | -30.1 | 33.8 | 3.4 |
| FTSE All-Share (TR)† | 682.1 | 31.2 | -3.9 | 47.3 | 10.1 |
| FTSE 100 (TR)† | 678.2 | 30.0 | -2.0 | 45.5 | 10.7 |
| Sector Average | 566.4 | 20.4 | -11.1 | 43.7 | 7.8 |
| Position in Sector | 4 | 217 | 271 | 270 | 286 |
| Funds in Sector | 46 | 237 | 281 | 306 | 311 |
| Quartile | 1 | 4 | 4 | 4 | 4 |
Please remember that past performance is not a guide to the future.
* Data from 23 December 1986. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 26 February 2010. All figures show total returns. †Percentage Growth. Sector is IMA UK All Companies.
Percentage Growth
Artemis Capital Fund Fund 12 Months to 30 September 2009
| 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|
| 20.9 | -40.2 | -2.0 | 21.3 | 26.4 |
Source: Lipper Limited, bid to bid in sterling with net income reinvested. All figures show total returns.
Value of £1,000 invested at Launch to 26 February 2010.
Data from 23 December 1986. Source Lipper Limited, bid to bid in sterling with net income reinvested to 26 February 2010.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Barclays | 5.1% |
|---|---|
| IG Group | 3.8% |
| Xstrata | 3.8% |
| HSBC | 3.2% |
| BP | 3.0% |
| Cookson Group | 3.0% |
| Anglo American | 2.8% |
| Next | 2.4% |
| Rio Tinto | 2.3% |
| International Personal Finance | 2.2% |
* Without cash.
Source: Internal.
Market Sector Split*
| Banks | 18.1% |
|---|---|
| Basic Resources | 16.1% |
| Oil & Gas | 13.3% |
| Industrial Goods & Services | 10.9% |
| Financial Services | 8.2% |
| Retail | 6.7% |
| Food & Beverage | 3.9% |
| Travel & Leisure | 3.1% |
| Personal & Household Goods | 3.0% |
| Other | 16.7% |
* Without cash.
Sector classification: FTSE Acturaries
Source: Internal.
% Variance†*
| IG Group | 3.7% |
|---|---|
| Cookson Group | 2.9% |
| Barclays | 2.9% |
| Xstrata | 2.4% |
| International Personal Finance | 2.2% |
| Next | 2.1% |
| Tomkins | 1.9% |
| GKN | 1.8% |
| Eurasian Natural Resources | 1.8% |
| Kingfisher | 1.7% |
† Positive variance between stock % held in the Fund versus FTSE All-Share. Without cash source: Internal.
Risk Warning
Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk), 25 The North Colonnade, Canary Wharf, London E14 5HS and is a member of the IMA. Artemis Fund Managers Ltd is a member of the Artemis Marketing Group. We only market our own unit trusts. The value of an investment, and any income from it, can fall as well as rise as result of market and currency fluctuations and you may not get back the amount originally invested.
All data is sourced internally unless otherwise stated.
The historic yield reflects distributions declared over the past twelve months as a percentage of the mid-market unit price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions.
